Shares in EQTEC PLC (LON:EQT) were higher on Wednesday after the energy company announced an extension to its memorandum of understanding (MoU) on the Billingham waste-to-energy project, which was due to lapse next month.
The prolonged agreement will now last until July 2020, in the meantime, it is hoping to make progress in discussions with potential funding partners.
In May, EQTEC signed a MoU to act as lead developer and technology provider for the Billingham project in County Durham, where some 200,000 metric tons of municipal waste will be processed into energy.
The AIM-listed firm said that the extension came after meetings with its strategic partners COBRA Instalaciones Y Servicios SA and Scott Bros. Enterprises Limited concluded that there had been "good progress" on grid connection, planning and feedstock supply.
The project has an estimated value of between £150mln and £180mln.
EQTEC chief executive David Palumbo said: "We are pleased that COBRA and Scott Bros are reassured by the progress achieved by our operational team to date on this ambitious energy from waste infrastructure project."
“We look forward to progressing discussions with potential funders interested to own energy infrastructure in a sector which is gaining significant traction and one which could have such an important positive environmental impact," he added.
EQTEC shares were up 3.7% to 0.14p in Wednesday morning trading.